FTX Hack Causes $417 Million Loss, Bankman-Fried Arrested
• FTX reported that more than $415 million worth of crypto was hacked in November 2020.
• Alameda Research disclosed that $2 million in cryptocurrency belonging to them was also stolen.
• Sam Bankman-Fried was arrested in the Bahamas last month and was accused of moving more than $1.5 million using accounts from his crypto exchange’s trading arm, Alameda Research.
The crypto market has been suffering lately, and the situation was exacerbated in November 2020 when the crypto exchange FTX disintegrated, leading to a cascade of events. After the collapse, it was reported that FTX had been hacked and more than $415 million worth of crypto had been stolen.
The exchange was able to recover more than $5 billion worth of liquid assets which would then be used to pay off creditors. However, Alameda Research, a hedge fund, disclosed that $2 million in cryptocurrency belonging to them was also stolen. This latest hack has caused questions to be raised about the trust of creditors in the platform.
Adding to the chaos, it was recently announced that the CEO of FTX, Sam Bankman-Fried, was arrested in the Bahamas last month on several charges that could put him behind bars for up to 115 years. This news was followed by Bankman-Fried allegedly moving more than $1.5 million using accounts from his crypto exchange’s trading arm, Alameda Research.
Though the Department of Justice is looking into this incident, the individual or group behind the hack has not been identified. The crypto community has expressed concern and suspicion about Bankman-Fried’s alleged actions. Nonetheless, the exchange is trying to rebuild trust with its customers, with Bankman-Fried himself promising to refund all users affected by the hack.
The events surrounding FTX have caused much confusion and disruption in the crypto market. It remains to be seen how the exchange and its CEO will move forward, but it’s clear that the incident has had a lasting impact on the community.